Zimbabwe banks on untapped gold as State miner eyes new discoveries

ZIMBABWE”S State-owned Mutapa Gold Resources (MGR) says vast areas of its mining concessions remain largely unexplored, presenting a major opportunity for new gold discoveries as the government steps up exploration to unlock the country’s mineral wealth.

Speaking during Mines Minister Polite Kambamura’s technical visit to Freda Rebecca Gold Mine in Bindura, MGR Chief Executive Officer Patrick Museva Shayawabaya said government-backed exploration could transform both the company and Zimbabwe’s mining sector.

“I was very excited to receive information that the government is going to be seriously involved in exploration,” Shayawabaya said.

“These tenements are holdings that we have, but on which we have not done much exploration. For us it represents potential not just for Mutapa Gold Resources, but for us as Zimbabweans, because that land has not been explored.”

The comments come as Zimbabwe seeks to expand mineral production to support economic growth and increase gold reserves backing its gold-backed currency.

Mutapa Gold Resources operates Freda Rebecca, Shamva and Jena mines under the Mutapa Investment Fund.

Shayawabaya said the company was steadily increasing production and remained on track to meet its annual targets.

MGR produced 2,354 kilogrammes of gold during the nine months to December before adding 901 kilogrammes in the quarter to March and 925 kilogrammes in the quarter to June.

“We are very much on course to achieving 3,600 kilogrammes for the year to December 2026,” he said.

The miner is forecasting about US$500 million in revenue and US$200 million in profit after tax this year, although Shayawabaya warned that declining global gold prices could affect earnings.

To sustain future growth, MGR will next month launch the US$162 million Shamva Hill Project, which will increase Shamva Mine’s production from 66 kilogrammes to 200 kilogrammes of gold per month while creating standalone processing facilities at the mine.

A further US$50 million will be invested in expanding Jena Mine, lifting output from 40 kilogrammes to 100 kilogrammes per month, while Freda Rebecca is expected to increase production from 204 kilogrammes to 270 kilogrammes monthly.

“So the teams are busy to grow the business to make sure that Mutapa Gold Resources makes its fair contribution to the Zimbabwean economy,” Shayawabaya said.

After touring the mine, Kambamura praised the company’s expansion strategy.

“The plans that the mine has to increase production, we are very excited as the Government,” he said.

“I would like to urge other operations also to follow suit by increasing their production, considering that our currency is backed by gold.”

He said the government was encouraged that the expansion projects were already funded and expected them to significantly increase Zimbabwe’s gold output in the coming years.

The post Zimbabwe banks on untapped gold as State miner eyes new discoveries appeared first on NewZimbabwe.com.